The Apple TV is one of the most competent set-top boxes you can find, and has sneakily become one…
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It's a concept that's been attempted to some degree before (Dish Network's PrimeTime Anywhere comes to mind) but a lot more ambitious. It'd more or less work like this: viewers can start any show at any time through Apple's set-top box because all the TV shows are stored on the cloud. Ideally, right when the show airs live, viewers can start playing a show on demand. On top of that, Apple wants to let users access all episodes of any show's current season (instead of just a few). TV at your complete convenience and not of that of the schedule. Makes sense, don't it.

Dish Network just introduced its new multi-room DVR, weirdly named Hopper, which can record three…
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The WSJ is also saying that the interface of the new Apple set-top box would lean heavily on iOS' navigation icons and may even let the iPhone and iPad be used as remote controls. That's no surprise as all on-screen guides of all cable companies are varying degrees of terrible. There'll also be some social aspects built in to the future of Apple TV, like sharing to Twitter (this already exists in things like the Peel) but that's obviously less important than Apple's vision of what TV should be like. After hearing it, I wouldn't mind living in that future myself*